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To: endthematrix

endthematrix: "That's "just" your trade war. China has so much US capital funding that IF (never happen) the screws were set that the China economy would fall flat."

Thanks to its massive trade surpluses, China has plenty of capital. This capital is fueling asset bubbles in Chinese cities instead of productive investments. What the Japanese real estate investors discovered, and what Chinese and US real estate investors are about to discover is that the world is awash in capital - it's new and productive ideas that are scarce. The problem isn't capital - it's the patents and designs embodied in the Chinese and foreign plants that set up in China because they can export to the US. If a bilateral trade embargo is imposed, both Chinese and foreign manufacturers will move a big chunk of their production abroad, devastating China's domestic economy.


205 posted on 03/26/2006 12:28:13 AM PST by Zhang Fei
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To: Zhang Fei

Your last point is noted. Move over Vietnam...


207 posted on 03/26/2006 12:34:00 AM PST by endthematrix (None dare call it ISLAMOFACISM!)
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To: Zhang Fei

Theoretical, at best. Like predicting the stock markert.

Fact is, the Chinese are filthy rich. Absolutely swimming in money.

Yes, the VAST majority of Chinese are poor... but the vast majority don't have ties to American companies.


211 posted on 03/26/2006 12:37:46 AM PST by Number57
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To: Zhang Fei

The problem with China's economy is the communist Chinese government which dictates inadequate consumption and excessive investment in China. Instead of spending some of those export profits on American and European consumer products, the Chinese government buys Russian military hardware and US treasury bonds. The Chicom dictatorship is deliberately generating a huge trade deficit with the US because they don't want their people buying our products. They pay their workers very little so they can make huge profits from state-owned companies and buy weapons and US debt instead. The underlying cause of much of the huge trade deficit is lack of freedom and human rights in China.


215 posted on 03/26/2006 12:40:55 AM PST by Patriot_from_CA (Suddenly the raven on Scalia's shoulder stirred and spoke. Quoth the raven..."NeverGore")
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To: Zhang Fei

A total embargo would not be able to prevent future Chinese growth in the long term. It would however change the orientation of the Chinese economy to internal-demand driven. A total embargo would also mean open confrontation with the Chinese across the globe and that would cost Americans enormous resources.


234 posted on 03/26/2006 4:03:16 AM PST by flg
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